HMRC have published the latest advisory fuel rates. These rates are used when an employee has a company car and either wishes to reclaim business mileage from their employer, or an employer pays for fuel but needs to work out the private element to recover from the employee.

​The updated rates apply from 1 March 2017 but businesses can continue to operate the previous rates for one month after the introduction.

Engine Size

Petrol

Diesel

LPG

1400cc or less

11p (11p)

7p (7p)

1401cc - 2000cc

14p (14p)

9p (9p)

Over 2000cc

20p (21p)

14p (13p)

1600cc or less

9p (9p)

1601cc - 2000cc

11p (11p)

Over 2000cc

13p (13p)

All figures are pence per mile. The previous rates are shown in brackets.Employers can also use these rates to calculate the input VAT to reclaim on mileage allowances paid to employees using their own cars. Employees must provide a VAT receipt for fuel with their expense claim for the employer to reclaim the input VAT.